Airline costs may escalate in FY2027 due to increased jet fuel prices, currency fluctuations, and ongoing conflicts in West Asia, according to ICRA. Geopolitical instability since February 2026 has been identified as a significant risk for the aviation sector.

Power plants' operational efficiency (PLF) is projected to stay around 65-66% through FY2027 due to weak demand, according to ICRA. Despite ongoing transmission infrastructure challenges, renewable energy sources continue to fuel capacity growth in the sector.

The ongoing conflict in West Asia is predicted to escalate construction costs for the Indian real estate sector by approximately 5%, due to increased material prices, as per industry warnings. Anticipate a possible price hike in realty costs starting from April.

Corporate credit resilience in FY26 is evident as ICRA reports a significant increase in upgrades over downgrades, with a credit ratio climbing to 3.1x from 2x in the previous fiscal year. This indicates a stronger financial position for many companies.

Corporate credit upgrades in India might have reached their peak, according to ICRA, Crisil, and India Ratings, due to global tensions and rising energy costs. Balance sheet strength is noted, but mid-tier firms and energy-dependent sectors face potential disruptions.

ICRA predicts a 7-9% expansion in the cement sector for FY27, primarily driven by increased demand from housing and infrastructure. However, potential profit margins could be affected due to escalating input costs, fuel prices, and geopolitical issues.

ICRA indicates an increase in ratings for the power sector in FY26 due to steady operations, largely attributable to enhanced execution and robust parent company profiles.

The aviation industry in India faces a slow growth trajectory and escalating costs according to ICRA's latest report. Despite an increment of 1.5% year-on-year in February 2026 air traffic, it still registered a decline of 6.5% compared to the previous month.